Prospective first-time buyers ‘saving more’

People who hope to buy their first home this year have been implementing debt management practices to save a deposit, research has found.

Figures from Abbey Savings have shown that 38 per cent of those building up a deposit intend to increase the rate at which they stash their money away in 2009.

And 40 per cent of those questioned who do not yet have anything put away said they have decided to begin saving over the next 12 months.

The average first-time buyer stated that they are working towards building a nest egg of £20,000 in order to obtain a mortgage.

“Home ownership is beginning to look like a much more realistic goal for thousands of first- time buyers who have clearly been keeping an eye on house prices,” commented Reza Attar-Zadeh, director of savings and investments at Abbey.

The Council of Mortgage Lenders recently stated that first-time buyers will need to save up a substantial amount to be approved for a homeowner loan.

By Jamie Price